Wisconsin federal milk order bulletin

Historic, Archive Document

Do not assume content reflects current
scientific knowledge, policies, or practices.

(Mys-

ISCONSIN

FEDERAL MILK ORDE|.p^ULLETIN

OF AGRICULTURE
GRICULTURAL LIBRARY

6 1965

Milwaukee, Nor^O yfeesEa
and Madison Marketing Areas

C . T. McCleery - MarketAdmijiistj.ator
NOVEMBER 1964

USDA »S AGRICULTURAL MARKETING SERVICE
MERGES DAIRY OPERATIONS

TheU.S. Dept, of Agriculture has announced
merger of the milk order, standardization, inspec-
tion and grading programs formerly in the Milk
Marketing Orders and Dairy Divisions of the Agri-
cultural Marketing Service. The new division will
be called the Dairy Division. In addition, the
Market News Branch of the former Dairy Division
has been transferred to the Poultry Division.

Herbert!. Forest, Director of the former Milk
Marketing Orders Division, is Director of the new
Dairy Division. Alexander Swantz, presently
Acting Director, Dairy Division, and Howard C.
Fedderson and William G. Sullivan, presently of
the Milk Marketing Orders Division staff, will
become Deputy Directors of the newly-created
Division.

BALANCE SFIEET OF AGRICULTURE

Assets and the claims against those assets for
all farm operators and landlords are estimated
each year by the U.S. Department of Agricul-
ture. The resulting balance sheet views agri-
culture as though it was one large business. This
provides a useful measure of changes in the over-
all financial condition of the agricultural indus-
try, but it does not reveal differences found
among states, regions or individual farmers.

The financial position of agriculture continued
to improve during 1963, at least on paper.
Farmers' assets rose to a record $223 billion as
of January 1, 1964, from $216 billion a year

earlier, continuing the uninterrupted rise of the
past nine years. Farm debts increased as well,
though less than assets, with the result that owner
equities in farm assets reached $188 (to page 8)

— DATA IN BRIEF

’ - FOR THE

MAN IN A HURRY

Milwaukee

Northeastern Wis.

Madison

OCTOBER 1964

Order No. 39

Order No. 45

Order No. 51

Class I Price & Differential

$4. 08 7.

$3.98 7. 7<t

$4. 08 7. 4<t

Class II Price & Differential

$3.27 7. at

$3.27 7. at

$3.27 7. at

Producer Price & Differential

$3.98 7. 3(t

$3.74 7.4(t

$3.96 7.3(t

Pounds of Producer Milk

72, 604, 796

37, 579, 204

21, 761, 748

Percentage in Class I

88.0%

67. 6%

85. 2%

NOVEMBER 1964

Class I Price & Differential

$4.11 7. 3(t 1

$4.05 7. 6(t

$4.11 7.3(t

2

PRODUCER PRICES FOR OCTOBER 1964

Milwaukee Wisconsin Marketing Area
Federal Order No. 39

Minimum prices per hundredweight to be
paid on or before the 15th of each month
to producers for 3,5% milk, f, o. b. plant.
These prices are subject to a butterfat dif-
ferential per point over and under 3, 5% and
to a deduction of 2 cents per hundredweight
for marketing service for nonmembers. In
the case of members of approved cooper-
atives, these prices are subject to the de-
ductions authorized by the associations.

The prices listed below do not include
any premium payments which may be paid
by handlers and which may bring actual pay-
ments in excess of minimum requirements.

UNIFORM PRICES AND

COMPUTATION

OCTOBER 1964

Producer Milk in Class I

Producer Milk in Class II

Total Milk and Value Before Adjustments

Adjustments for Value of:

Overage Deducted from Classes I & II
Beginning Inventory Reclassification
Other Source Milk Deducted from Class I
Butterfat More or Less than 3. 5 Percent
Plant Location Differentials
Half of Producer-Equalization Fund

Aggregate Value and Average Price

Minimum B.F. Reserve to Producer-Equalization Fund

Name of Handler
Blochowiak Dairy

Pay Price
$3.96

Dif'l

7.3<t

Uniform Price

: to Producers for 3. 5% Milk

The Borden Co.

3.96

7.3

* Subject to location differentials. These minimum pay

Cedarburg Dairy, Inc,

3.98

7.4

Christiansen's Dairy

4. 06

7.4

Fairmont Foods Co.

4. 00

7.4

MANUFACTURING PRICES AND

Gehl Guernsey Dairy

3.86

7.3

Golden Guernsey Dairy

3.97

7.3

Year

92 Score Cheddar Spray

Basic

Handler

Harmony Dairy Products

3.92

7.3

and

Butter

Cheese

Dry

F ormula

B 'fat Dif'l

Hawthorn-Mellody Farms

3. 98

7.3

Month

Chicago

Wis.

Skim

Price

C.I*

C.II

Healthway Dairy, Inc,

4. 04

7.4

1963

cents

cents

cents

dol.

cents

Home Dairy

4. 04

7.3

Oct.

58. 48

34. 50

14. 25

3. 12

7.2

6.7

Keystone Farms

3. 97

7.3

Nov.

58.09

35. 00

14. 24

3. 15

7.0

6.7

Krueger Dairy

4. 05

7.4

Dec,

58.01

35.12

14. 24

3. 16

7.0

6.7

McFarlands' Farm Dairy

3.93

7.3

1964

Milk Producers Coop,

4. 07

7.4

Jan,

57. 97

35. 25

14.32

3. 16

7.0

6.7

Mullen's Dairy

4. 07

7.4

Feb.

57. 97

35.12

14. 26

3. 17

7.0

6.7

Progressive Dairy Prod.

4. 04

7.4

Mar.

57. 97

34. 19

14. 25

3.16

7.0

6.7

Pure Milk Association

4.11

7.4

Roets Home Dairy

4. 00

7.3

Apr,

57. 97

33.81

14. 19

3.15

7.0

6.7

Schroeder Dairy

4. 00

7.4

May

57. 97

33.70

14. 22

3. 12

7.0

6.7

Sealtest Foods

3.92

7.3

June

57. 97

33.75

14. 24

3. 12

7.0

6.7

Vande Kolk Dairy

4. 04

7.4

Warren Dairy

4. 06

7.4

July

58.00

33. 75

14.23

3.11

7.0

6.7

Wayside Dairy

4. 07

7.4

Aug.

59.51

34.38

14. 30

3. 12

7.0

6.8

West Side Dairy, Inc.

3.97

7.3

Sep.

61.32

36.31

14. 30

3.15

7.1

7.1

WEIGHTED AVERAGE

7. 34:

Oct.

60. 47

36.75

14. 29

3.24

7.4

7.0

Nov.

3.27

7.3

Weighted Average of

Producer

^Exception, Order

45 is

. 125 X the butter price (Col. 1)

Prices for Information Purposes:

$3.98

for the

preceding month

. November is 7.64:.

3

OTHER PRICE DATA

OF -UNIFORM PRICES

Northeastern Wisconsin Marketing Area
Federal Order No. 45

Madison Wisconsin Marketing Area
Federal Order No. 51

Pounds
of Milk

Average
B 'fat T est

Price
at Test

VALUE

Pounds
of Milk

Average
B'fat Test

Price
at Test

VALUE

25, 398, 042

3.575941

$4. 039503

$1, 025, 954. 57

18, 549, 184

3. 439467

$4. 000030

$741, 972. 96

12. 181, 162

4. 180332

3.746232

456, 334. 64

3,212, 564

5. 105112

4. 393579

141, 146.53

37, 579, 204

$1, 482, 289. 21

21,761, 748

$883, 119. 49

1, 429. 13
140. 96

-75, 598. 29
-290. 76
15, 969. 79

1, 266. 17
296.04
9, 087. 32
-29, 730. 03
8, 355.05
8, 984. 80

$3.789170 $1,423,940.04

$4. 007725

$881, 378. 84

.049170

-18, 477.81

. 047725

-19,613.62

$3.74*

$1, 405, 462. 23

$3. 96*

$861, 765.22

r

prices do not include any premium payments which may be paid by handlers.

FEDERAL ORDER PRICES FOR WISCONSIN AREAS - NO. 39, NO. 45, NO. 51

Class I Price
Differentials

Supply-Demand

Adiustments

Class I
Prices

Uniform Prices to Producers** and
Producer Butterfat Differentials

No.39No.45 No.51

No.39 No.45 No.51

No.39 No.45 No.51

Milwaukee

Northeast

Madison

cents

cents

dollars

dol.

cents

dol.

cents

dol.

cents

108

94

108

-24

-20

-24

3.96

3.86

3.96

3.88

7. 1

3.61

7.2

3.82

7.1

108

94

108

-24

-24

-24

3.99

3.85

3.99

3.89

7.0

3.56

7.0

3.84

6.9

88

74

88

-24

-24

-24

3.80

3.66

3.80

3.69

6.9

3.42

7.0

3.62

6.9

88

74

88

-24

-24

-24

3.80

3.66

3.80

3.70

6.9

3.44

7.0

3.62

6.9

88

74

88

-24

-24

-24

3.81

3.67

3.81

3.71

6.9

3.45

7.0

3.65

6.9

68

54

68

-24

-24

-24

3.60

3.46

3.60

3.50

6.9

3.31

7.0

3.47

6.9

68

54

68

-24

-24

-24

3.59

3.45

3.59

3.50

6.9

3.30

7.0

3.44

6.9

68

54

68

-24

-24

-24

3.56

3.42

3.56

3.46

6.9

3.27

7.0

3.39

6.9

68

54

68

-24

-24

-24

3.56

3.42

3.56

3.47

6.9

3.28

7.0

3.42

6.9

88

74

88

-24

-24

-24

3.75

3.61

3.75

3.64

6.9

3.46

7.0

3.61

6.9

108

94

108

-24

-24

-24

3.96

3.82

3.96

3.82

7.0

3.62

7. 1

3.78

6.9

108

94

108

-24

-24

-24

3.99

3.85

3.99

3.89

7.1

3.69

7.3

3.87

7. 1

108

94

108

-24

-20

-24

4. 08

3.98

4. 08

3.98

7.3

3.74

7.4

3.96

7.3

108

94

108

-24

-16

-24

4.11

4. 05

4.11

** Weighted averages are shown for Milwaukee and all markets when base and excess prices are in effect,

4

UTILIZATION AND CLAS

FEDERAL ORDER

MILWAUKEE MARKET NO. 39 —

ITEM

October 1964
Thousand %
Pounds B 'fat

September 1964
Thousand %
Pounds B 'fat

October 1963
Thousand %
Pounds B 'fat

CLASS I MILK

Packaged Products;
Fluid Milk

51, 262

3.5

46, 686

3.5

49, 014

3.5

Flavored Milk

2, 165

3.6

1, 882

3.5

2, 251

3.5

2% Skim Milk, Solids Added

4, 410

2.1

3, 982

2.1

3,445

2.1

" •’ " , Plain

1,599

2.3

1, 583

2.2

1, 392

2.2

Skim Milk, Solids Added

2, 098

.4

1, 955

.4

1,822

.4

Plain Skim

993

.8

937

.8

1,031

.7

Buttermilk

576

1.0

572

1.0

520

1.0

Flavored Milk Drink

233

.6

218

.5

197

.5

Half & Half

1,185

12.4

1,084

12.4

1,035

12.4

Light Cream

48

19.0

44

18.9

49

19.0

Whipping Cream

190

32.7

158

32.5

189

33.2

Cultured Cream

262

18.9

259

18.9

236

18.7

Subtotal

65, 021

3.5

59, 360

3.5

61, 181

3.5

Bulk Sales to Nonhandlers

556

3.7

584

3.6

496

3.7

Unaccounted for Milk

162

8.9

265

8.1

204

6.4

Total Utilized in Class I

65, 739

3.5

60, 209

3.5

61,881

3.5

Nonpool Receipts*

-1.825

3.5

-1,750

3.7

-337

2.6

CLASS I - PRODUCER MILK

63.914

3.5

58, 459

3.5

61.544

3.6

CLASS II MILK

Bakeries et al.

141

11.7

126

12.3

133

12.6

Cottage Cheese

4, 608

1.1

4, 293

1.0

4, 249

1.0

Cheese

1, 499

3.7

1, 203

3.7

706

3.6

Butter

545

17.7

203

24.3

288

25.0

Evap. , Cond. , & Pwd.

1,689

4.7

1, 927

3.8

1, 301

4.4

Ice Cream & Mixes

2, 398

11.5

2, 220

12.6

2, 250

10.2

Livestock Feed

88

63

79

Dumped Products

14

5

-

Skim Equiv. Fort, Prod.

1, 411

1,318

1, 186

Ending Inventory

3, 875

4.1

5, 363

3.9

5,034

4.0

Shrinkage

1,065

3.5

963

2.6

962

3.1

Total Utilized in Class II

17, 333

4.4

17, 684

4.2

16, 188

4.2

Nonpool Receipts*

-8, 642

3.2

-8, 138

3.5

-9, 159

3.4

CLASS II - PRODUCER MILK

8, 691

5.6

9. 546

4.7

7, 029

5. 1

TOTAL PRODUCER RECEIPTS

72, 605

3.8

68, 005

3.7

68, 573

3.7

NOTE; Bakeries et al, includes products for candy manufacturing, aerated cream, sour cream
products not labeled Grade A, and small amounts of eggnog during off-season months.

OSSIFICATION OF MILK

DERS 39, 45, 51

5

NORTHEASTERN MARKET NO. 45 MADISON MARKET NO. 51

October 1964

September 1964

October 1963

October 1964

September 1964

October 1963

Thousand %

Thousand %

Thousand %

Thousand %

Thousand

%

Thousand

%

Pounds B ’fat

Pounds B ’fat

Pounds B ’fat

Pounds B ’fat

Pounds

B’fat

Pounds

B’fat

20, 749

3.5

19, 643

3.5

20, 030

3.5

11, 926

3.4

10, 911

3.4

10, 989

3.4

1,452

3.6

1,302

3.6

1,444

3.5

888

3.7

810

3.7

879

3.8

964

2.1

893

2.1

448

2.1

2, 455

2.1

2, 220

2.1

2,187

2.1

221

1.9

202

1.9

253

1.9

-

-

-

692

.4

583

.4

659

.3

748

.8

687

.8

679

.8

604

.6

638

.5

637

.5

55

.3

53

.2

62

.4

218

.8

207

.9

237

.8

174

1.4

168

1.4

171

1.6

138

.6

90

.9

85

.7

68

2.1

27

.3

2

1.1

404

12.9

408

12.9

418

12.8

369

12.3

345

12.2

340

12.1

6

21.7

5

22.1

7

22.8

8

27.9

7

26.3

5

22.9

84

35.6

75

35.2

87

34.9

52

34.2

43

34.5

52

34.1

69

19.1

70

19.0

71

18.9

54

19.1

49

19.2

50

21.4

25, 601

3.5

24, 116

3.6

24, 376

3.6

16, 797

3.5

15, 320

3.5

15, 416

3.5

329

3.8

306

3.8

367

4.0

3,529

3.8

2, 787

3.9

1, 943

3.8

89

9.6

268

3.6

145

5.7

103

4.7

122

4.6

106

1.7

26, 019

3.6

24, 690

3.6

24, 888

3.6

20, 429

3.5

18, 229

3.5

17, 465

3.5

-615

3.2

-664

3.1

-48

2.6

-1,880

4.3

-1, 640

4. 1

-682

3.4

25, 404

3.6

24, 026

3.6

24, 840

3.6

18, 549

3.4

16, 589

3.5

16,783

3.5

-

-

-

4

25.7

4

21.5

8

19.1

2, 118

1.0

1,943

1.1

1, 948

1.1

1,067

.9

1, 085

.8

947

1.3

5, 570

3.6

4, 277

3.5

6, 384

3.6

797

3.2

554

3.0

813

2.6

490

35.3

302

34.5

530

35.2

231

36.0

188

35.6

259

35.8

3,493

. 1

2, 088

.1

4, 134

. 1

924

996

1,341

1,512

8.5

1, 558

7.9

1, 493

8.1

766

8.3

880

8.2

773

8.7

81

65

80

78

85

68

14

12

12

2

45

-

468

449

445

464

401

462

2, 001

4.3

2, 528

4.1

2, 444

4. 1

1, 173

4.0

1, 505

4. 1

1,424

4.0

403

4.9

536

3.4

597

3.8

324

2.7

342

2.5

338

1.3

16, 150

3.9

13, 758

3.8

18, 067

3.8

5,830

4.1

6, 085

3.9

6,433

4.0

-3, 975

3.1

-4, 170

3.1

-5, 200

3.5

-2,617

2.8

-2,619

3.3

-2, 756

3.7

12. 175

4.2

9, 588

4. 1

12, 867

3.9

3,213

5.1

3, 466

4.3

3,677

4.2

37. 579

3.8

33,614

3.7

37, 707

3.7

21,762

3.7

20, 055

3.6

20, 460

3.6

* Includes receipts of other source milk, beginning inventory, and overage, all as allocated to
classes, and adjustment for Class II interorder transfers shown as Class I.

6

CLASS I AND RECEIPTS BY MONTHS

POUNDS OF PRODUCER MILK IN CLASS I, ITS PERCENTAGE TO TOTAL PRODUCER MILK
WITH TOTALS FOR PRODUCER MILK AND FOR OTHER SOURCE MILK BY WISCONSIN MARKETS

MILWAUKEE, No. 39 NORTHEASTERN. No. 45 MADISON. No. 51

Year

and

Month

CLASS I

From

Pro-

ducers

Other

Source

Milk

CLASS I

From

Pro-

ducers

Other

Source

Milk

CLASS I

From

Pro-

ducers

Other

Source

Milk

1963

Mil.#

%

Mil.#

Mil.#

%

Mil

.#

Mil.#

%

Mil.#

Oct.

61.5

89.6

68.6

3.8

24.8

65.9

37.7

2.5

16.8

82.0

20.5

1.9

Nov,

58.7

87.7

66.9

3.0

23.5

58.5

40.2

4.3

16.0

80.7

19.8

1.6

Dec.

1964

58.2

82.0

71.0

3.1

23. 1

53.2

43.3

4.4

15.0

71.1

21.1

1.8

Jan,

61.2

83,5

73.4

3.4

24.5

55.0

44.7

5.0

16.0

71.3

22.4

1.8

Feb.

58.0

82.3

70.6

3.4

23.2

57.4

40.4

1.2

15.7

72.5

21.6

1.7

Mar,

59.6

78.8

75.7

3.5

23.7

54.2

43.7

1.3

16.3

70.9

23. 1

2.0

Apr.

59.1

81.3

72.7

3.5

23.6

55.6

42.5

1.5

15.1

68.3

22. 1

1.9

May

58.0

77.5

74.8

3.6

23.2

52.2

44.4

1.5

13.9

60.9

22.9

2.2

June

54.3

77.5

70.1

3.6

21.7

52.1

41.5

1.7

13.9

67.2

20.8

2.3

July

55.0

81.7

67.2

3.9

24.2

66.3

36.4

2.3

14.6

76.0

19. 1

2.7

Aug.

55.7

81.5

68.3

3.8

24.1

69.5

34.6

2.7

14.5

76.4

19.0

2.5

Sep.

58.5

86.0

68.0

4.8

24.0

71.5

33.6

2.3

16.6

82.7

20.1

2.4

Oct.

63.9

88.0

72.6

5.1

25.4

67.6

37.6

2.0

18.5

85.2

21.8

2.6

FARM NUMBERS AND DELIVERIES

NUMBER OF FARMS AND AVERAGE DAILY DELIVERIES PER FARM BY WISCONSIN MARKETS

MILWAUKEE NORTHEASTERN MADISON

Year

and

Month

Number
of Farms

A vg. Daily
Per Farm

Number
of Farms

Avg. Daily
Per Farm

Number
of Farms

Avg. Daily
Per Farm

•63

'64

•63

'64

•63

'64

'63

»64

»63

•64

»63

'64

Jan,

2270

2247

990

1056

1374

1421

940

1014

615

642

1028

1125

Feb,

2261

2235

1006

1092

1371

1341

952

1038

651

641

1023

1163

Mar.

2257

2224

1010

1041

1360

1335

959

1055

650

640

1025

1163

A pr.

2243

2211

1019

1100

1355

1334

971

1063

645

635

1047

1158

May

2214

2185

1033

1106

1355

1333

979

1075

639

633

1086

1167

June

2209

2173

1011

1078

1415

1319

976

1050

621

628

1053

1102

July

2222

2177

927

993

1417

1323

814

890

633

635

924

973

Aug.

2241

2232

927

1003

1417

1326

797

843

639

639

892

958

S ep.

2262

2240

946

1019

1438

1317

822

851

650

646

933

1035

Oct.

2268

2264

984

1053

1361

1318

894

920

646

649

1022

1082

N ov.

2259

993

1447

927

643

1028

D ec.

2256

1021

1447

966

643

1056

ti

>

<

2248

989

1396

916

640

1010

9

WISCONSIN FEDERAL MILK ORDER BULLETIN

NOVEMBER 1964

THE DAIRY SITUATION AND 1965 OUTLOOK
(Excerpts from "The Dairy Situation", November 1964)

Continued Large Milk Output in 1965

U.S. milk production has increased in 3
of the past 4 years (including 1964) from
year-earlier levels. In 1965, production
probably will be near the 125, 7 billion
pounds in prospect for 1964. Assuming av-
erage weather conditions, production per
cow will set another record high, and milk
cow numbers may not decline as much as
they did in 1964, However, pasture and
hay conditions above normal in 1965, plus
a high milk-beef cattle price ratio could
cause production per cow to rise more than
usual and reduce dairy cow culling. Then
milk output next year could exceed the record
high of 126 billion poimds set in 1962,

The beef cattle- milk price relationship
has favored increased milk production this
year. Milk prices rose slightly in 1964 from
1962-63 levels, but beef cattle prices dropped
sharply in 1963 and did not regain previous
levels until mid- 1964,

January- September 1964 milk production
was 97, 0 billion pounds, 0,7 percent above
the same period in 1963, Gains were greater
in the Lake States than for the Nation, Each
of these States — Michigan, Wisconsin, and
Minnesota — posted 2 to 5 percent gains.
Small increases also occurred in the Corn
Belt and Northern Plains areas, where pro-
duction in most other years has declined
steadily. In the Northeast, which uses about
two-thirds of its milk for fluid purposes, out-
put was 0, 7 percent below a year earlier.
Drought in Southern New England and much
of the Middle Atlantic States was the major
cause of the decline.

Less Feed and Hay Supplies

The feed grain supply for the 1964-65
feed grain marketing year which began Oc-
tober 1, is estimated at 206 million tons,
down 6 percent from last year.

The balance between milk production and
grain supplies is important, even though
some substitution is made between hay and
grain supplies when supplies of one or the
other are short. However, use of pasture
has declined as the use of harvested roughage

has increased, A large part of the increase
in milk production per cow resulted from
heavier feeding.

Hay supplies for this year are below
the 1958-62 average in most areas of the
country, but most of the decline from last
year has occurred in the West North Central
region. There have been small declines in
the North Atlantic, East North Central, and
Western regions. Although dairy pasture con-
ditions improved somewhat over the country
in early fall, dairy cows normally receive
only a part of their roughage requirements
from pasture in late season.

Same Demand-Per Capita

Civilian use of milk in 1964 is expected
to be about 1 1/2 billion pounds above the
117,1 pounds of milk equivalent consumed
in 1963. Total civilian disappearance of
milk and dairy products in 1965 is likely to
be only slightly more than that expected this
year. Donations for welfare by CCC next
year may be lower than in 1964, but con-
sumption of fluid milk in schools dirough the
special milk program is expected to rise
slightly. The extension of the food stamp
plan to areas in 41 States and the District of
Columbia will tend to reduce CCC donations
but raise dairy sales somewhat. Experience
under the Pilot Food Stamp Program indicated
that total consumption of dairy products by
low income families receiving donated dairy
products changed little on the average when
they came under the Food Stamp Program.
However, these families consumed more of
the higher-valued dairy products such as fluid
milk and less butter and nonfat dry milk.

Most of the expected 1 1/2 billion pound
gain this year compared with 1963 is from
commercial sources, though CCC donations
of butter and cheese are expected to increase
about 0. 3 billion pounds, milk equivalent.
Sales of fluid milk items, butter, American
cheese, and nonfat dry milk increased. Use
of milk on farms with milk cows will be
about 1/2 billion pounds lower than in 1963.

Per capita use of all dairy products in the
United States this year may be 626 poimds

10

(milk equivalent), 2 pounds below 1963 con-
sumption. Next year, per capita disappear-
ance is expected to continue the downtrend,
which started in 1956; disappearance per per-
son from commercial sources also is down
slightly since 1956, Both fluid and manu-
factured dairy products are increasing in total,
but per capita disappearance in 1964 remains
about the same as in 1963 for most products
except fluid milk and evaporated milk. Con-
sumption arising from CCC donations of butter
and cheese for welfare and from milk in
school programs will be close to the 43 pounds
per person (milk equivalent) in 1963.

Per capita disappearance of mi Ikf at in 1964
is estimated at 23. 3 pounds, about the same
as 1963, However, in 1965 per capita use
may again turn downward because of declines
in use per person of high fat products such
as fluid cream and butter.

In 1964, per capita civilian disappearance
of solids-not-fat is rising above 1963. A
1964 rise would be the first gain since 1955.
This prospective increase is due primarily to
increased use of nonfat dry milk.

Per capita disappearance of butter in 1964
is being maintained at the 1963 level of 6. 8
pounds. Consumption of butter from com-
mercial sources is estimated to be about the
same as a year earlier for the first time since
1957, even though per capita oleomargarine
disappearance is rising 4 percent.

Same Prices to Producers in 1965

The price to farmers for all milkat whole-
sale averaged $4, 06 per 100 pounds for the
first 9 months of 1964, about 5 cents above
a year earlier. For the entire year 1964,
prices will average about $4. 14 per 100
pounds compared with $4. 10 in 1963. Price
increases in the fall usually arise from sea-
sonal declines in milk receipts, which de-
crease the proportion used for manufacturing,
and from seasonal price increases for milk
used for bottling. In addition, this year.
Class I prices were increased 10 to 15 cents
per 100 pounds for October-March for 17Fed-
eral milk orders, primarily in the South Cen-
tral region. This was done because drought
conditions caused short supplies relative to
fluid sales. Hearings regarding emergency
price increases have been scheduled in 4 ad-
ditional markets.

Milk-feed price relationships are likely to

be less favorable to increased milk produc-
tion in 1965 than they were in 1964. How-
ever, the relationship will still be favorable
compared with longtime averages.

U. S. in World Dairy Market

Exports of dairy products from the United
States in 1964 are expected to total around
6 1/2 billion pounds of milk equivalent and
about 1 1/4 billion pounds of nonfat dry
milk. This will be 15 percent above the
1963 previous record peacetime exports of
nonfat dry milk and equal to that of milk
equivalent in 1955. In 1965 U.S. exports
of dairy products are likely to decline sharply
from this year’s high level.

The United States was able to attain this
year's level of exports by liquidating the
excess stocks of butter and nonfat dry milk
built up during 1961-62. In 1965 uncom-
mitted stocks held up the Government are
likely to be near the minimum working level
for the programs imder way, and commer-
cial stocks are expected to be about the same
as in 1964. As a result, exports in 1965
will have to be derived primarily from cur-
rent production. Estimates are that the ex-
cess of marketings over domestic demand in
1965 will be near 8 billion pounds of milk
equivalent and about 1. 2 billion pounds of
nonfat dry milk. Of this amount, currently
near 6 billion pounds milk equivalent of but-
ter and cheese and about 200 million pounds
of nonfat dry milk are used for domestic
programs.

Most significant in 1964 was the tremen-
dous increase in sales of dairy products for
dollars and the decrease in donations of non-
fat dry milk for welfare and school lunch
use abroad. Another reason for the increased
demand for dairy products is the successful
effort of exporting countries during the past
few years to widen world markets — through
food aid and through programs for expanding
cash sales.

But the long-run outlook for U.S. dairy
exports is less optimistic. World milkfat
production will probably catch up with de-
mand soon. Only a small increase in world
milk production would raise foreign butter
supplies substantially. Most developing coun-
tries are more likely to turn to the use of
vegetable oils than to butter, because they
are less expensive, and consumers are ac-
customed to their use.

COMPARATIVE STATISTICS

SELECTED DATA COMPARISONS, V/ISCONSIN MARKETS

7

Order No. 39 Order No. 45 Order No. 51

October

Com-

October

Com-

October

Com-

•64

‘63

parison

•64

'63

parison

•64

•63

parison

Average Daily:

Producer Milk, thous. lbs.

2342

2212

+ 5.9%

1212

1216

-0. 3%

702

660

+6.4%

Other Receipts ” "

165

126

66

81

133

111

Gross Class I " •'

2121

1996

+ 6. 3%

839

803

+ 4.5%

642

563

+ 14. 0%

Gross Class II ” *'

559

522

+ 7. 1%

521

583

-10.6%

193

208

-7. 2%

Deliveries per Farm, lbs.

1053

984

+ 7. 0%

920

894

+ 2. 9%

1082

1022

+5. 9%

Number of Farms

2264

2268

-4

1318

1361

-43

649

646

+ 3

Avg. Test of Prod. Milk, %

3.78

3.71

3.77

3.70

3.69

3.63

Number of Handlers:

Pool Plants

25

26

-1

62

64

-2

22

22

-

Other Handlers

5

4

+ 1

5

8

-3

8

9

-1

Producer Milk in Class I, %

88.0

89.8

67.6

65.9

85.2

82.0

Shrinkage to Total Receipts;
Product Pounds, %

1.41

1. 43

1.24

1. 85

1. 44

1.73

Butterfat Poimds, %

1. 60

1. 43

1.93

2. 11

1.26

.67

NEARBY FEDERAL ORDER DATA

PRODUCER MILK, TOTAL AND CLASS I, AND RELATED PRICES - OCTOBER 1964

Market

Producer

Milk

Class I
Milk

Class I Price
3. 5% Milk

Producer Price
3. 5% Milk

thous, lbs.

thous, lbs.

$ per cwt.

$ per cwt.

Chicago, No. 30

456,815

220, 442

4. 10

3.78

Duluth-Superior, No. 69

12, 499

7, 661

4.39

3.84

Madison, No. 51

21, 762

18, 549

4.08

3.96

Mich. Upper Peninsula, No. 44

9, 459

7, 890

4.19

4.13

Milwaukee, No. 39

72, 605

63,914

4. 08

3.93

Minneapolis-St. Paul, No. 68

85, 099

62, 300

4. 09

3.90

Northeastern Wisconsin, No. 45

37, 579

25, 398

3.98

3.74

Quad Cities-Dubuque, No. 63

20, 717

15, 654

4. 30

4.03

Rock River Valley, No. 38

9, 563

8, 859

4.12

4.05

Southern Michigan, No. 40

334, 218

199, 368

4. 45

3.94

NOTE: The producer price shown for Michigan Upper Peninsula and Milwaukee is, in each case,
the weighted average of minimum pay prices for pool plants, including zone or location
differentials. Announced prices for basic zones are quoted in other instances. During base
pay periods weighted averages are shown for base and excess prices.

8

Comparison of Daily Producer Deliveries

to Daily Class I Utilization

Thous.

Ibunds

MILWAUKEE MARKET

2500

2000

1500

1000

500

500

1 T"\U. 1 f 1

roaucer

S,

,

\ 'n

,

r

n •! 1 II

‘ NORTHEASTERN MARKET

1

Ua

lily

rr

Odu

icei

r Ueftveri

— 1 — r—

es

n

r

\

1

—

rn

1

!—

r\ *1 /-I

i/aiiy \»iass i UTiiizovion

-

L . 1

MADISON MARKET

I- i

Ugily rroducer u

eiiveries

1

i

•

1

— 1

h-

i-l--

-

1 —

h

L_

1

1.. 1

1 1*: 1 : -

.

1

_1_:

1 !

I'TT 1 1 1 n ^

O

&

C-* W >> c >» OO a > o

Jan.

Feb.

Mar.

Apr.

May

Jim.

1964

1965

WISCONSIN

FEDERAL MILK ORDER BULLETIN

Published Monthly By
Federal Milk Market Administrator
4920 West Burleigh Street
Milwaukee 10, Wisconsin
for the

Milwaukee, Northeastern
and Madison Marketing Areas

This bulletin is primarily to provide producers
who are not members of cooperative associ-
ations with market information in accordance
with § 1039. 74 of the Milwaukee Wisconsin
marketing order, § 1045. 75 of the Northeast-
ern Wisconsin marketing order, and § 1051. 77
of the Madison Wisconsin marketing order.

Balance Sheet, Continued from page 1

billion — up more than 2 percent from a year
earlier and more than five times the total farm
liabilities.

Comparative Balance Sheet of Agriculture
for the United States, January 1

Assets

1963 1964

(billion dollars)

Change

(o/o)

Physical
Real estate

142. 8

150. 8

+ 6

Non-real estate
Livestock

17. 2

15. 7

- 9

Machinery and
motor vehicles

19. 5

20. 1

+ 3

Crops

9.2

9.8

+ 7

Household furnishings

8.7

8.4

- 3

Financial

18.4

18. 5

+ 1

Total

215. 8

223.3

+ 3

Claims
Liabilities
Real estate debt

15. 2

16. 8

+ 11

Non-real estate debt
CCC

2. 1

1.9

-10

Other

14. 5

16. 2

+ 12

Proprietor's equities

184.0

188. 4

+ 2

Total

215. 8

223. 3

+ 3

The improvement, however,

is almost solely

the result of higher price tags on farm assets. It
is not due to a significant boost in physical assets
or to a reduction of debt- -either of which would
provide better evidence of financial progress on
the part of farmers.

Total farm debt (excluding CCC loans) reached
a new high of $33 billion, up more than S3
billion from a year earlier. Farm real estate
debt rose to about $17 billion--up 11 percent--
while non-real estate debt exceeded $17 billion--
12 percent higher than a year earlier.

Each year since 1960 the increase in total debt
has been greater tlian in the preceding year. Over
the five-year period from 1959 to 1964, total debt
increased $12 billion or nearly one and three-
quarters the increase in the previous five years.

One of the major influences in the growth in
debt has been the continuing decline in the num-
ber of farms and the accompanying rise in farm
size. To enlarge their farms, operators increas-
ingly have used credit in recent years, and be-
cause of rising land prices, each unit of land
transferred has boosted the amount needed.
(Excerpts from Agricultural Letter, Nov. 13, 1964)